It is a best practice is to change the encryption key once every year.

The encryption key is required to activate data encryption when you import an organization database into a new deployment or a deployment that has had the configuration database (MSCRM_CONFIG) re-created after the organization was encrypted. You can copy the original encryption key to Notepad and paste it into the Settings > Data Management > Data Encryption dialog box after the organization import is completed.

When you re-enter the data encryption key, we recommend that you run the Microsoft Dynamics 365 web application using Internet Explorer to paste the encryption key into the Data Encryption dialog box.

We strongly recommend that you make a copy of your data encryption key. This is particularly important for on-premises deployments that may need to reactivate data encryption after a redeployment or failure recovery.

Sign in to Microsoft Dynamics 365 as a user with the system administrator security role.

Go to Settings > Data Management.

Click Data Encryption.

In the Data Encryption dialog box, select Show Encryption Key, in the Current encryption key box select the encryption key, and copy it to the clipboard.

Caution

When the Dynamics 365 (on-premises) website is not configured for HTTPS, the Data Encryption dialog box will not be displayed. For a more secure deployment, we recommend that you configure the website for HTTPS. However, if the website is not configured for HTTPS, use a tool that can be used to modify Dynamics 365 database tables, such as Microsoft SQL Server Management Studio or the Deployment Web Service, open the configuration database (MSCRM_CONFIG), and in the DeploymentProperties table, set DisableSSLCheckForEncryption to 1.

Paste the encryption key in to a text editor, such as Notepad.

Warning

By default, Microsoft Dynamics 365 generates a passphrase that is a random collection of Unicode characters. Therefore, you must save the system-generated passphrase by using an application and file that supports Unicode characters. Some text editors, such as Notepad use ANSI coding by default. Before you save the passphrase using Notepad, select Save As, and then in the Encoding list, select Unicode.

As a best practice, save the text file that contains the encryption key on a computer in a secure location on an encrypted hard drive.